SEC filing reveals US-listed firm has applied for “the Dutch equivalent of Chapter 11” for its two subsidiaries.
Dutch publisher and developer Playlogic has voluntarily requested “surseance van betaling” for its two operating companies. The move, revealed in a brief SEC filing, follows rumours of financial woes at the firm that lost $20 million last year and a further $2.2 million in the first quarter of this fiscal year.
The state of “surseance van betaling” is roughly equivalent to Chapter 11 bankruptcy protection under the US Bankruptcy Code. It allows the company to delay payments but maintain control of its own affairs as it attempts to come to a deal with its creditors. If Playlogic cannot come to an agreement to the satisfaction of those creditors, both Playlogic International N.V and its subsidiary, Playlogic Game Factory B.V, will be declared insolvent and cease trading.
Playlogic first announced profits in 2008 when it reported a net profit of $700,000 on revenues of $10.1 million for 2007. At the time, the firm’s CEO said these results heralded “a turning point” for the company. Last year, however, the company reported a net loss of $9.5 million on revenues of $9 million after delaying various titles from the fourth quarter of 2008 to 2009 and a “onetime additional impairment on capitalized software” of $4.5 million.
The firm’s recent big-name titles have also suffered critically, with the releases of both Infernal: Hells Vengeance and Fairytale Fights being met with generally poor reviews.
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